Business plan is an integral part of any enterprise that wants to be successful and profitable. In general terms, it may be defined as a document that outlines a company’s objectives and concrete steps that should be made to achieve them. It does not have to be long because it gives a general description of possible investors and business partners. Nevertheless, it should include five essential parts: executive summary, marketing plan, operations plan, financial plan, and appendices.
Some may disregard the value of an executive summary, but it is important for a company’s communications. It serves the role of introduction to any meeting with partners, governmental bodies, and investors. There is usually little time to read all parts of a business plan, which may consist of complex explanations and calculations, so a coherent and easy-to-read summary should be a solution. The logic implies that an executive summary should be written after the completion of all components of a business plan. The reason is that in such an inverse approach, all the key ideas discussed in the plan will necessarily be described.
Speaking of substantial parts, a marketing plan means outlining methods and strategies to achieve the target audience and markets. It should not be confused with the operating plan, which is the ultimate clear explanation of how the team and different company departments will contribute to achieving goals. The financial plan shows the amount of money the business holds and clearly explains how long-term costs will be covered. Finally, one should devote great attention to appendices, which may consist of market analysis, financial statements, calculations, and many different documents. It can be compared with academic research conducted to receive results depicted in the business plan.